The post Altcoin Season in Trouble? Ethereum & Solana Suffer as Crypto Market Crashes appeared first on Coinpedia Fintech News
The altcoin industry, led by Ethereum (ETH) and Solana (SOL), has significantly impacted the recent market crash fueled by major global stock indexes. Since early March this year, the altcoin’s market cap has slipped from around $1.27 trillion to around $866 billion on Monday.
What caused this harsh downturn?
The excitement over the approval of spot Ethereum ETFs in the US has been overshadowed by significant cash outflows. Grayscale’s ETHE has seen nearly $3 billion in net outflows since last month’s approval.
Additionally, US spot Ether ETFs have experienced $420 million in net outflows, with their current assets under management totaling around $7.35 billion.
Seasonal Trends: More Pain Ahead for Altcoins?Historical data shows that August and September are often weak months for the crypto industry, especially following the Bitcoin halving. Recent sell-offs by Jump Trading, which have liquidated many Ethereum holdings, have caused significant ripples in the altcoin market. Jump Trading currently holds over $60 million worth of Ether, which could be sold off soon.
Market Sentiment
The recent Bitcoin sell-off by the US government, which transferred 10,000 BTC to Coinbase for sale, has increased fears of further market declines. The Ethereum Fear and Greed Index has dropped to 34%, indicating growing investor anxiety.
Expert Advice: Here’s What Investors Can DoCrypto analyst Michaël van de Poppe suggests that now is a good time to Dollar-Cost-Average (DCA) into the altcoin market, preparing for the next bullish phase. Van de Poppe believes that many altcoins are nearing a bottom against Bitcoin and could soon see a major rebound.
Furthermore, Bitcoin’s dominance has been forming a weekly reversal pattern, whereby a rising wedge is coupled with a bearish divergence on the weekly Relative Strength Index (RSI).
Additionally, the Fed is about to initiate its first interest rate cut since 2021 ahead of the upcoming U.S. general elections.
Also Read: With A Bullish Shift From Memecoins, Will DeFi Tokens Skyrocket?
The altcoin market is in turmoil. Are you buying the dip, or waiting for a clearer picture?